Luxury Housing Sales in India Soar by 38%: Delhi-NCR, Mumbai, and Hyderabad Lead the Trend
India's luxury housing market has witnessed a significant surge, with sales of units priced over Rs 4 crore rising by 37.8% year-on-year in the first nine months of 2024. Delhi-NCR, Mumbai, and Hyderabad are driving this trend, while Pune is also emerging
Luxury HousingReal EstateDelhincrMumbaiPuneReal Estate PuneOct 17, 2024
Delhi-NCR, Mumbai, and Hyderabad led the charge, contributing nearly 90% of the luxury housing sales among India’s top seven cities. The report also marked Pune as a growing market, with 810 units sold during the same period.
City-wise Sales Figures
- Delhi-NCR 2,590 units (compared to 480 units in Q3 2023)
- Mumbai 1,280 units (compared to 1,040 units in Q3 2023)
- Hyderabad 200 units (compared to 630 units in Q3 2023)
- Chennai 150 units (compared to 75 units in Q3 2023)
- Kolkata 80 units (compared to 50 units in Q3 2023)
- Bengaluru 50 units (compared to 90 units in Q3 2023)
- Pune 12 units (compared to 27 units in Q3 2023)
[Source ‘India Market Monitor Q3 2024 – Residential’, CBRE South Asia]
Delhi-NCR emerged as the frontrunner in luxury residential sales, recording an impressive 72% year-on-year growth, with Mumbai following closely at 18%.
Strong Demand Fuels Growth
The report attributes the rise in sales to an increase in interest from non-resident Indians (NRIs) and domestic investors seeking premium properties. Buyers’ preferences have shifted towards high-end homes offered by leading developers, who are known for their financial stability and strong execution capabilities.
India’s luxury housing market is witnessing robust growth, driven by strong performance in the first half of 2024 and the festive season boost. Anshuman Magazine, chairman and CEO of CBRE India, South-East Asia, Middle East, and Africa, said, “We expect sales and new launches to exceed 300,000 units for the second consecutive year.”
Across the broader housing market, sales of residential units in India remained robust, with over 225,000 units sold between January and September 2024. This steady demand prompted developers to introduce new projects, adding around 215,000 units to the market.
Mumbai, Pune, and Bengaluru dominated the housing market, collectively accounting for 64% of total sales during this period. The luxury segment has continued to grow, with the share of mid-range projects representing 44% of total sales, followed by high-end and affordable housing.
Sales and Launches from July to September
In the third quarter of 2024, over 68,400 units were sold, and more than 62,000 new units were launched across the country. Mumbai, Pune, and Hyderabad accounted for 65% of all apartment launches, with sales in these cities also taking a 65% share of the total sales.
According to Magazine, there is a clear shift towards luxury developments even in traditionally mid-range markets like Noida, Bengaluru, Pune, and Chennai. “The demand for premium amenities is becoming a key factor in luxury housing projects,” he said.
Drop in New Launches
Despite the rise, there are concerns about property prices in the current global economic climate. Anshuman Magazine noted that elevated capital values may lead to a more cautious approach from buyers. “Property prices will likely be influenced by unsold inventory, project quality, and access to infrastructure,” he explained.
The latest report by PropTiger.com indicates a 25% drop in new housing property launches during the July to September 2024 period. The reduction is attributed to rising property prices, which have increased by 3% to 50% in some prime localities, slowing immediate buying decisions.
Frequently Asked Questions
What is driving the increase in luxury housing sales in India?
The rise in luxury housing sales is attributed to an increase in interest from non-resident Indians (NRIs) and domestic investors seeking premium properties. Buyers are also preferring high-end homes offered by leading developers known for financial stability and strong execution.
Which cities are leading the luxury housing market in India?
Delhi-NCR, Mumbai, and Hyderabad are the leading cities in luxury housing sales, contributing nearly 90% of the market in the top seven cities. Pune is also emerging as a growing market.
What is the expected trend for the next year in the luxury housing market?
Experts expect sales and new launches to exceed 300,000 units for the second consecutive year, driven by strong performance in the first half of 2024 and the festive season boost.
Why are there concerns about new launches in the real estate market?
The concerns about new launches are due to rising property prices, which have increased by 3% to 50% in some prime localities, leading to a more cautious approach from buyers.
What factors are influencing property prices in the luxury housing segment?
Property prices are likely to be influenced by factors such as unsold inventory, project quality, and access to infrastructure. These factors are making buyers more cautious in their purchasing decisions.
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